Thailand prohibits crypto exchanges from dealing in meme coins and NFTs
The Securities and Exchange Commission of Thailand has banned crypto exchanges from dealing in meme coins (cryptocurrencies such as Dogecoin) and non-fungible tokens (NFTs). It has approved new rules that prohibit digital asset exchanges (crypto exchanges) from providing services in relation to utility tokens and certain types of cryptocurrencies.
In a press release, the SEC stated that a SEC Board Meeting held on 9th June, 2021, had passed a resolution regarding Rules, Conditions, and Procedures for Undertaking Digital Asset Businesses.
The Notification essentially prescribes that digital asset exchanges set their listing rules. It further prohibits exchanges from providing services related to cryptocurrencies with certain characteristics.
Prohibited Cryptocurrencies
The notification prohibits cryptocurrencies that have any of the following characteristics:
1. Meme tokens which have no clear objective or substance or underlying, and whose price runs on social media trends.
2. Fan Tokens which are tokenized by the fame of influencers.
3. Non-Fungible Tokens which are a digital creation to declare ownership in an object. It is unique and not interchangeable with digital tokens of the same category and type at the equal amount.
4. Digital tokens which are utlized in a blockchain transaction and issued by digital assets exchanges (utility tokens) or related persons.
In addition, a digital asset exchange has to set the requirement that the digital token issuer who is the exchange itself or related person comply with the white paper and relevant rules in substance. Failure to comply could result in the delisting of such digital token from the exchange.
Exchanges must comply and revise their listing rules within 30 days of the notification.
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